llllllllllliilillilil ~I Iii II Iii ill If I IIi ~~li~i'iillillllllllll 3 1262 08486 7679 Registry No. 299-1-21 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 

AS APPROVED ON FEBRUARY 17,.1934. 

WE DO OUR PART 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 298 

CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 

AS APPROVED ON FEBRUARY 17, 1934 

ORDER 

APPROVING CoDE oF FAIR CoMPETITION FOR THE WIPING CLOTH 

INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Wiping Cloth Industry, and hearings 

having been duly held thereon and the annexed report on said Code, 

containing findings with respect thereto, having been made and 

directed to the President; 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30~ 

1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved, provided that the 

Code Authority shall appoint a Committee, which shall make a 

study of minimum wages in the Industry looking toward measures 

which will enable an increase in such minima, and shall report such 

study, with recommendations, to the Administrator prior to December 

31, 1934. 

Approval recommended: 

A. D. WHITESIDE, 

HuGH S. JoHNSON, 

Administrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D.C., 

February 17, 1931,.. 

41087°----376-109----34 (199) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: The Hearing on the Code of Fair C01npetition for the Wiping 

Cloth Industry was held at the Mayflower Hotel, Washington, D . C., 

on December 11, 1933. The Code, which is attached, was presented 

by duly qualified and authorized representatives of the industry, 

complying with statutory requirements, said to represent 70% in 

number and 80% in volume of the industry. 

In accordance with the customary procedure, everyone present who 

had filed a request for an appearance was freely heard in public and 

all statutory and regulatory requirements were complied with. 

The provisions of this Code have been approved by the Labor Advisory Board, the Industrial Advisory Board, the Research and Planning Division, and the Lljgal Division. The Consumers Advisory 

Board approved all provisions of the Code except the one requiring 

the use of a standard form of contract by all members of the industry. 

THE INDUSTRY 

In 1929 the industry did a twelve (12) million dollars volume of 

business; in 1933 this volume had declined about 40% to around seven 

(7) million dollars. The industry employed four thousand (4000) fulltime workers in 1929 and in 1933 the number had declined to about 

twenty-five hundred (2500). The employment is divided about 

equally between men and women. The operations performed by 

men are distinctly different in nature and degree of skill from those 

performed by women. In 1929 the average minimum wage for men 

was thirty-five cents (35¢) per hour and for women twenty cents (20¢) 

per hour; on July · 1, 1933, this had decreased to twenty-five cents 

(25¢) for men and fifteen cents (15¢) for women, and in some localities 

to as low as nine cents (9¢) per hour for women. In 1929 the average 

number of hours worked per week was sixty (60), and on July I, 1933, 

it was fifty-five (55).. The hours provided in this Code show a 27% 

reduction from those in effect on July 1, 1933, and should increase 

employment accordingly. · The Code provisions on wages will result 

in a substantia.! increase in pay over the wages in effect on July 1, 1933. 

PROVISIONS OF THE CODE 

The Code provides minimum wage rates of thirty-two and one-half 

cents (32X¢) per hour for men and twenty-seven and one-half cents (27 }~¢ ) for women in the North, twenty-seven and one-half cents 

(27 X¢) per hour for men and twenty-two and one-half cents (22}~¢) per 

hour for women in the South. No office or clerical employee shall 

be paid at a rate of less than fourteen dollars ($14) per week in the 

North or thirteen dollars ($13) per week in the South. Provision 

is made for maintenance of differentials in wages above the minimum. 

Hours of work are limited to forty (40) hours per week and eight 

(8) per day with the following exceptions: truck drivers and their 

helpers may work forty-eight (48) hours per week; electricians, firemen and iactor;y machinery repairmen may work forty-four (44) 

(200) 
201 

hours per week; watchmen may work fifty-two (52) and fifty-six (56) 

hours per week on alternate weeks or an average of fifty-four (54) 

hours per week. Executives receiving thirty-five dollars ($35) or 

more per week, outside salesmen and outside buyers are not limited in 

hours. Employees engaged in emergency maintenance or emergency 

repair work are not limited in hours but must be paid time and onethird for hours worked in excess of their normal maximum. No 

employee is permitted to work more than si."'< (6) days in any seven-day 

period. 

Representation on the Code Authority is provided for all members 

of the trade. 

Trade practice provisions have been incorporated to eliminate 

unfair practices which have sprung up in the industry. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings 

in this rna t ter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes 

of Title I of the National Industrial Recovery Act, including removal 

of obstructions to the free flow of interstate and foreign commerce 

which tend to diminish the amount thereof and will provide .for the 

general welfare by promoting the organization of industry for the 

purpose of cooperative action among the trade groups, by inducing 

and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair 

competitive practice, by promoting the fullest possible utilization of 

the present production capacity of industries, by avoiding undue 

restriction of production (except as may be temporarily required), 

by increasing the consumption of industrial and agricultural products 

through increasing purchasing power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise 

rehabilitating industry. 

(b) Said trade industry normally einploys not more than 50,000 

employees, and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association 

is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable restrictions 

on admission to membership therein. 

(d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not designed to and will not eli1ninate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic proces haYe not 

been deprived of the right to be heard prior to approval of said ode. 

For these reasons, this Code has been approved. 

Respectfully, 

FEBRUARY 17, 1934. 

HuGHS. JoHN oN, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE WIPING CLOTH 

INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Wiping Cloth Industry, and shall be the 

standard of fair competition for such industry and shall be binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Wiping Cloth Industry", as used herein, means and 

includes the launderjng and/or sterilizing of textile fabrics for conversion into wiping cloths (and the processing incidental thereto), 

and/or the sale of such wiping cloths. · 2. The term "employee" as used herein, means and includes any- one engaged in the Industry in any capacity receiving compensation 

for ills services, irrespective of the nature or method of payment of 

such compensation, except a member of the Industry. 

(a) The terms "outside salesman" and "outside buyer", as used 

herein, mean and include any employee who is engaged exclusively 

in selling and/or buying respectively outside the establishment of his 

employer. 

(b) The term "watchmen", as used herein, means and includes 

those employees who are exclusively engaged in watching plants, 

property, and/or plant equipment. 

(c) The phrase "employees in a managerial capacity", as used 

herein, means and includes foremen and office managers. 

(d) The term "clerical and office employees", as used herein, 

means and includes any employee who is engaged in work of a 

clerical, accounting, sales, or service character, in the office of a 

member of the Industry. 

3. The term" employer", as used herein, means and includes anyone 

by whom any such employee is compensated or employed. 

4. The term "member of the industry", as used herein, means and 

includes, but without limitation, any individual, partnership, associa- tion, corporation or other form of enterprise, engaged in the industry, 

either as an employer, or on his or its own behalf. 

5. The terms "President", 11 Act", and 11 Administrator", as used 

herein, shall mean, respectively, the President of the United States, 

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

6. The term 11 South", as used herein, means and includes the 

States of Maryland, Virginia, North Carolina, South Carolina, 

Florida, Georgia, Alabama, Tennessee, Kentucky, Mississippi, Louisiana, Arkansas, Missow·i, Oklahoma, Texas. 

(202) 
203 

7. The term uNorth", as us d herein, means and includes all of 

the territory of the contin ntal United State ex ept that portion 

included 1mder the term "South". 

ARTICLE III-HouRs 

1. No employee, except as herein other-wi e provided, hall be 

permitted to work in excess of 40 hours in any one week or more than 

8 hours in any 24-hour period; provided, however, that office and lerical employees shall be permitted to work not to exceed 80 hours per 

year in addition to the maximum herein above established; and 

proYided further that such additional hours hall be ompensated 

for at the rate of time and one-third. 

2. The maximum hours fixed in the foregoing section shall not 

apply to: 

(a) Truck drivers and their helpers, who shall be permitted to work 

not in excess of 48 hours in any one week. 

(b) Employees engaged exclusively as electricians, firemen, or 

factory machinery repairmen, who shall be permitted to work not in 

excess of 44 hours in any one week. 

(c) Engineers, who shall be permitted to work not in excess of 48 

hours in any one week. 

(d) Employees in an executive or managerial capacity receiving 

$35 or more per week. 

(e) Outside salesmen and outside buyers. 

(f) Watchmen, who shall be employed in pairs and shall not be 

permitted to work more than 52 hours and 56 hours on alternate weeks, 

or an average of 54 hours per week. 

(g) Employees on emergency maintenance or emergency repair 

work involving breakdowns or protection of life or property, but in 

any such special case at least time and one-third shall be paid for 

hours worked in excess of the maximum hours herein provided. 

3. No employee shall be permitted to work more than six days in 

any seven-day period. 

4. No employer shall knowingly permit any employee to work for 

any time which when totalP-d with that already performed with another 

employer, or mnployers, exceeds the maximum permitted herein. 

AR'l'ICLE IV-WAGES 

1. No employee, except as herein othenvise provided, hall be 

paid at less than the following wage rates per hour: 

In the North: Male, $.32%; Female, $.27} . 

In the South: Male, $.27 }~; Female, $.22}~. 

2. No office or clerical employee shall be paid at le s than the 

following weekly rate : In the North, $14.00; In the South, $13.00. 

3. This Article establishes a minimum rate of pay, r gardle s of 

whether an employee is compen ated on a time-rate, pi c w rk, or 

other basi . 4. Female mployees performing sub tantially the same work as 

male mployee hall receive the arne rates of pay a male employ . 5. No member of the industry, by reason of the adoption of this 

ode, hall reduce an employee's total' eekly compen ation (ba ed on 

the four week period prior to July 15, 1933) in excess of the minimums 
204 

herein provided, whether based on an hourly, weekly or other rate, 

notwithstanding the fact that the hours of work of such employee may 

be reduced hereunder. 

There shall be an equitable adjustment of all wages above minimum, 

and to that end, within thirty days from the effective date of this 

Code, the Code Authorjty shall submit for the approval of the Administrator a proposal for adjustment in wages above the minimum. 

Upon approval by the Administrator, after such hearing as he may 

prescribe, such proposal shall become binding as a part of this Code. 1 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No person under 18 years of age shall be employed in this 

Industry. In any State an employer shall be deemed to have complied with this provision as to age if he shall have on file a certificate 

or permit duly issued by the Authority in such State empowered to 

issue employment or age certificates or permits showing that the 

employee is of the required age. 

2. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization, or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

3. No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to refrain 

from joining, organizing, or assisting a labor organization of his own ~ 

choosing. 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay and other conditions of employment approved 

or prescribed by the President. 

5. Every employer shall provide for the safety and health of his 

employees at the place and during the hours of their employment. 

Standards for safety and health shall be submitted by the Code 

Authority to the Administrator within six months after the effective 

date of this Code. 

6. No provisions in this Code shall supersede any State or Federal 

law which imposes more stringent requirements on employers as to 

age of employees, wages, hours of work, or as to safety, health, sanitary or general working conditions than are imposed by this Code. 

7. Employers shall not reclassify employees or duties of occupations 

performed by employees, or engage in any other subterfuge, for the 

purpose of defeating the provisions of the Act or of the Code. 

8. Posting: . (a) Each employer shall post in a conspicuous place of easy and 

continuous access to employees, the articles dealing with hours, wages 

and general labor provisions of this Code. 

(b) The notice shall be printed in English in type of at least 10 

point, and at least three notices shall be posted in any shops employing 

more than 10 employees, and one in any smaller shop. 

(c) All changes in the provisions of these aforesaid articles shall be 

posted within one week after such changes have been incorporated in 

the Code. 

1 See paragraph 2 of order approving this Code. 
205 

ARTICLE VI-ADMINISTRATION 

To further effectuate the policies of the Act, a ode Authority 

is hereby constituted to administer this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of from eleven (11) to 

thirteen (13) representatives of the industry, or such other number 

as may be approved from time to time by t.he Administrator, to 

be selected as hereinafter provided; and the Administrator, in his 

discretion, may appoint not more than three (3) additional members who shall be known as "administration members of the Wiping 

Cloth Industry Code Authority", without vote, to represent such 

groups or governmental agencies as he may designate. 

(b) Eleven (11) representatives of the Industry shall be selected 

by the Board of Directors of the Sanitary Institute of An1erica. 

(c) Two additional representatives of the industry may be apP?inted by the Administrator or selected in a manner prescribed by 

hrm. 

2. Duties and powers of Code Authority. 

The Code Authority shall have the following power , to the extent 

permitted ·by the Act. 

(a) To adopt by-laws and rules and regulations for its procedure and 

for the administration and enforcement of this Code. 

(b) To make investigations as to the functioning and observance of 

any provisions of this Code at its own instance, or on complaint by any 

person affected, and to report the same to the Administrator. 

(c) To require, from time to time, from each member of the Industry, reports in such form and containing such information as the 

Administrator may prescribe, in order that he may be kept informed 

with respect to the observance of this Code. Except as otherwise 

provided in the Act, any reports filed in accordance with these provisions shall be confidential, and the data of one employer shall not be 

revealed to any other employer. 

(d) To present to the Administrator, from time to time, recom- mendations based on conditions in the industry, as they may develop, 

which will tend to effectuate the operation of the provision of this 

Code. Such recommendations when approved by the Administrator 

shall have the same force and effect as the other provi ion of this 

Code. 

(e) Within ninety (90) days of the effective date of this Code the 

Code Authority shall submit recommendations prescribing standards 

of laundering and sterilizing of wiping clothsl which, upon approval 

of the Administrator, shall have the same torce and effect as the 

other provisions of this Code. 

(f) Within ninety (90) days of the effective date of this Code the 

Code Authority shall submit recommendations for a standard form 

of contract for the industry which, upon approval of the Administrator, 

shall have the same force and effect as the other provi ion of this 

Code. 

(g) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its acti ities provided for herein 

and to pay such trade associations and agencies the cost thereof, 

provided that nothing herein shall relieve the Code Authority of its 

duties or responsibilities under tbi~ Code, and that such trade asso-
206 

ciations and agencies shall at all times be subject to and comply with 

the provisions hereof. 

(h) To make recommendations to the Administrator for the coordination of the administration of this Code with such other codes, if 

any, as may be related to the Industry. 

3. Each trade association directly or indirectly participating in the 

selection or activities of the Code Authority shall: 

(a) Impose no inequitable restrictions on membership. 

(b) Submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, 

together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly 

representative of the trade and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

5. Members of the Industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by ascenting to and 

complying with the requirements of this Code and sustaining their 

reasonable share of the expenses of its administration. The reasonable share of the expenses of administration shall be determined by 

the Code Authority, subject to review by the Administrater, on the 

basis of volume of business and/or such other factors as may be 

deemed equitable to be taken into consideration. 

6. In addition to the information required to be submitted to the 

Code Authority, there shall be furnished to government agencies such 

statistical information as the Administrator may deem necessary for 

the purpose recited in Section 3 (a) of the Act. 

7. If the Administrator shall detennine that any action of a code 

authority or any agency thereof may be unfair or unjust or contrary 

to the public interest, the Administrator may require that such action 

be suspended to afford an opportunity for investigation of the merits 

of such action fmd further consideration by such code authority or 

agency pending final action, which shall not be effected unless the 

Administrator approves or unless he shall fa.il to disapprove after 30 

days' notice to him of intention to proceed with such action in its 

original or modified form. 2 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for the members of the industry and are prohibited: 

1. The allowance of a cash discount in excess of 2%, by reason of 

payment on or before the lOth of the month following date of invoice. 

2. No member of the industry shall use advertising (whether 

printed, radio, display, or of any other nature) or other representation 

which is inaccurate in any material particular or in any way misrepresent any commodity (including its use, trade-mark, grade, quala See paragraph 2 of order approving this Code. 
207 

ity, quantity, origin, size, material content, or preparation) or redit 

terms, values, policies, services, or the nature or form of the bu ine s 

conducted. 

3. The sale, or offer for sale, of laundered and/or sterilized ' ipers 

imported from a foreign country, unless all packages of such wipers 

are legibly marked and invoices covering the same contain a notice 

stating the country of their origin, that the wipers are of imported 

material, and that they have been laundered and/or sterilized in a 

foreign country. The imported wiper shall not be accompanied by 

the affidavit of guaranty of the Sanitary Institute of America, u.nle s 

it is actually laundered and/or sterilized within the continental limits 

of the United States to conform to the standards of the unitary 

Institute of America. 

4. The sale, or offer for sale, of wipers as sterilized or laundered, 

unless they are actually processed to conform with the standards prescribed by the Code Authority and approved by the Administrator. 

5. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit 

standing, or by other false representations or by the fal e disparagement of the grade or quality of their goods. 

6. No member of the industry shall give, permit to be given, or 

directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative 

of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without 

the knowledge of such employer, princip~l or party. Commercial 

bribery provisions shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

7. Withholding from, or inserting in, the invoice statement which 

make the invoice a false record wholly 01 in part. Postdating and/or 

predating of invoices shall be considered falsification of record. 

8. The false marlcing or branding of any product of the industry 

which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance, 

character, nature, origin, size, finish, or preparation of any product 

of the industry, or otherwise. 

9. The secret payment or allowance of rebates, refunds, commissions, credits, or unearned discounts, whether in the form of money 

or otherwise, or the secret extension to certain purchasers of special 

services or privileges not extended to all purchasers on like terms 

and conditions. 

10. Inducing the breach of an existing contract between a competitor and his customer or source of supply, or interfering with or obstructing the performance of such contractual duties or services. 

11. Aiding or abetting any person, firm, partnership, or corporation in any unfair practices in the ·wiping Cloth Industry, dire tly 

or by using any subterfuge or evasion. The principal or principals 

of any member of the Industry shall be responsible for any violation 

by an agent acting within the scope of his authority. 

12. The shipment of goods on consignment, except that shipments 

on consignment may be made solely to jobbers, in which cas the 

consignment period shall not exceed a period of four month , aft r 

which period interest shall be charged at the rate of 6% per annum. 
208 

ARTICLE VIII-MoDIFICATION 

1. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions 

of subsection (b) of Section 10 of the National Industrial Recovery 

Act, from time to time to cancel or modify any order, approval, 

license, rule, or regulation issued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions imposed by 

him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, 

such modification to be based upon application to the Administrator 

and such notice and hearing as he shall specify, and to become effective 

on approval of the President. 

ARTICLE IX-MONOPOLIES, ETc. 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate 

against small enterprises. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 298. 

Registry No. 299-1-21. 

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